10 May 2023

Highly rated private credit – unsung heroes?

As the dust begins to settle following a turbulent 2022 and the recent banking crisis, we reflect on the varying dynamics of private credit markets, their differentiation and their role in investor portfolios.


Private credit is not a homogeneous asset class. Investors should not confuse highly rated assets with deeper sub-investment grade assets such as direct lending which are significantly riskier.

Over recent months yields for highly rated assets have become much more attractive, in our view, and are offering a meaningful premium over public equivalents.

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